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G-5 Domestics and US Year End Income Tax Obligations

Posted by Vanessa Vidal, FPC on 1/9/14 8:09 AM

Q. I am a G-4 visa holder.  I do not pay US Income Taxes.  Am I required to file anything at year end?

G-5 Domestic PayrollStaff members of international organizations inside the US territory are not required to pay US Income Taxes on their income from the international organizations; however, when they become G-5 sponsors, they must file/pay employment taxes arising from their domestic (household) employment.  Federal  employment taxes are reported and paid on the Form 1040 Schedule H.  If there is no income subject to US Income taxation, this Form must be submitted with payment as a stand along document to the Federal Government no later than April 15th.

Recent well publicized accounts of G-5 visa fraud has raised the awareness of many staff members of international organizations of the importance of payroll and payroll tax compliance.

Q. I know my G-5 employee is required to file an Income Tax Return.  Do I have any responsibility?

G-5 domestic servants, admitted to the United States to work for staff members of international organizations and missions, must pay US income taxes on their wages. 

Having the privilege to be a G-5 sponsor brings along important obligations as well.  Beside the mandatory minimum wage, rules of conduct and other regulations, it is also a G-4 obligation to make sure the G-5 they sponsor properly files his/her income tax returns. 

Q. What documents does my employee needs?

G-5 domestics must file their Income Tax Returns no later than April 15th for the prior year.  To file their returns they must fill out Form 1040NR, Form 1040NR-EZ, Form 1040 or Form 1040EZ depended on their residency status for the tax year.

IMPORTANT:  Failure to properly report and pay US income taxes will cause the application for visa renewal or visa extension to be denied by the US State Department.

HomeWork Solutions assists hundreds of G-4/A-3 visa holders with their household employment taxes.  We are very familiar with the unique rules and regulations for your kind of visa.  Give us a call at 800.626.4829 for a free consultation.  Our knowledgeable and friendly staff will be happy to assist you!

More Information:   
IRS Publication 519  IRS Publication 515

G-5 Domestic  Household Payroll Guide

Vanessa Vidal, FPC
HomeWork Solutions, Inc.
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